Hi Everyone,

I am thinking about closing my traditional bank account like TD and Chase. I already have 1 online high yield interest bearing savings account and im thinking about going all in. I no longer want to see an interest of .01 cent every year? or have to keep a minimum in order to avoud fees. What do you guys think?

Original Post

I would say to go with a mutual fund or to go to your county court house to see if there are any properties that have back taxes. One can make anywhere from 6-12% on the money they pay in back taxes on someone else's property! We have done this a few times, and it was good. But one always needs to check the property's condition, ability to sell, just in case you end up with the property. More often that not, if you do, it will be of much greater value than what you paid for the back taxes. And if you DO end up with the property, you don't need a realtor to sell it for you unless you really want one. Many times , other's who have checked on the property will be willing to buy it for a decent amount of profit in your pocket.

 

As far as savings accounts, you could keep going to the high interest savings accounts. The regular savings accounts are a good tool for kids to start learning the value of money, but for adults, the higher interest rate accounts are the way to go.

 

AverageJoe posted:

I would say to go with a mutual fund or to go to your county court house to see if there are any properties that have back taxes. One can make anywhere from 6-12% on the money they pay in back taxes on someone else's property! We have done this a few times, and it was good. But one always needs to check the property's condition, ability to sell, just in case you end up with the property. More often that not, if you do, it will be of much greater value than what you paid for the back taxes. And if you DO end up with the property, you don't need a realtor to sell it for you unless you really want one. Many times , other's who have checked on the property will be willing to buy it for a decent amount of profit in your pocket.

 

Thanks for this @AverageJoe Would love to learn more about the property/back tax investment option.  Any good resources you can recommend to explore this in more detail.

I talked to a local realtor friend of mine. I also spoke to an investor in the town I grew up in while I was visiting there. The thing one needs to remember on these is that you may not get your money back for up to two or three years. But, you still get the interest as well. If the person never pays the back taxes, you get the first right to buy the property, sometimes for the costs of the back taxes alone. It is an involved process...I don't remember if it was Robert Kyosaki (Rich Dad Poor Dad)  or Carlton Sheets that had the information on the back taxes. There are several other good books on it at the local libraries and some on the net. I'll see if I have any of the ones on the net in my  book of favorites.

https://www.fortunebuilders.com/tax-lien-investing/

 

AverageJoe posted:

I talked to a local realtor friend of mine. I also spoke to an investor in the town I grew up in while I was visiting there. The thing one needs to remember on these is that you may not get your money back for up to two or three years. But, you still get the interest as well. If the person never pays the back taxes, you get the first right to buy the property, sometimes for the costs of the back taxes alone. It is an involved process...I don't remember if it was Robert Kyosaki (Rich Dad Poor Dad)  or Carlton Sheets that had the information on the back taxes. There are several other good books on it at the local libraries and some on the net. I'll see if I have any of the ones on the net in my  book of favorites.

https://www.fortunebuilders.com/tax-lien-investing/

 

Thank you for the info!

I personally have been transferring my money to higher yield savings accounts without all the fees.

There are so many new services out there that give you much higher interest than local banks. They are going to have to start competing or they are going to fall behind.

The fact that they give so little interest and charge fees is not appealing to me at all.

I had about $120 in my local savings account and I transferred it to my checking right before Jan. because I wasn't sure if my paycheck would go through before my car loan took money from my account.

I transferred it back the next day but they still took a $2.50 fee for my account going below minimum.

That ended up being a good chunk of the interest I had accrued that past year so it just frustrated me.

One other way I have been getting better returns than I get from a bank is by investing in dividend paying stocks and REITs.

@AverageJoe I was introduced to making investments on back taxes a while ago but haven't been able to understand exactly how it works. Any info would be appreciated. I will check out the link you already shared!

I liked my return on investment on the tax lien certificates, but there was way too much involvement for me at the time, and I didn't have the time. But, many of my friends ended up making a good chunk of change in it, Im thinking of going back to it again. 

@Mo Brownies - I think more and more people are moving away from store front banks to online banking. You make way more in interest and you can deposit checks or do direct deposit just as easily. 

Lucy posted:

@Mo Brownies - I think more and more people are moving away from store front banks to online banking. You make way more in interest and you can deposit checks or do direct deposit just as easily. 

I have now considered putting my emergency fund in a online CD account for 2.90 APY. its money i shouldnt be touching and hopefully i dont- but if anything I do have credit card I can use. Ive been thinking about doing the 12 months or 24 months CD. nothing more then 2 year. Doing the calculations - if i put 10k in, thats can be $285 or $588 respectivetly. Not bad for a year or 2 years.

AverageJoe posted:

I liked my return on investment on the tax lien certificates, but there was way too much involvement for me at the time, and I didn't have the time. But, many of my friends ended up making a good chunk of change in it, Im thinking of going back to it again. 

I live in NY - and unforuntately, from my quick research. this isnt possible. they only sell wholesale. Also you have to be a holding company. i think westchester county may allow for the public to buy. But it does seem like alotof involvment.

i think we have some thing like this in KS.
I just don't no how to find the list here.
I found out throw that the 1 bedroom house
sold for $3000 back taxes. The person who brought
it or paid the taxes has the house looking really
nice now.

If I could find the right properties here, I would do so. One friend made over $345K last year in five states. That's a great return for his $45K investment

 

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